Tips for Effective Checking Account Management: Avoiding Fees

School: Blair High School - Course: ECON 123 - Subject: Accounting

In this lesson, you will learn to: ●Learn tips for using their checking account effectively, including the use of mobile alerts ●Read a checking account agreement and identify the fees associated with a checking account ●Understand how overdraft protection works and how to avoid high fees attached to the service ●Read a bank statement to verify its accuracy and interpret how their money is being used Directions: Access the resources for each activity on the left column. Complete the questions in the boxes on the right. Unless otherwise indicated, be sure to respond in complete sentences. ResourcesQuestions 1QUESTION OF THE DAY: What is the average fee to take money out of a non- network ATM? Answer the question on the first slide in your Student Activity Packet. Then, follow your teacher's directions on how to answer the follow-up questions.Estimated time: 5 mins 1.Make an estimate -- what is the average fee to take money out of a non- network ATM? 3.00

2How to Start Using Your Checking Account Properly Checking accounts are fundamental, as you saw in the last lesson, but it's important to know how to use your account properly. Watch this video, starting at 0:42, to answer the questions. Estimated time: 10 mins 1.Why is it vitally important to understand the fees your bank may charge on your checking account? To help avoid costly mistakes and wasting money. 2.Why do the women from the Financial Diet recommend using direct deposit, mobile banking, and financial apps? Checking account transactions are NOT reported to the credit bureaus and do not affect your credit score. 3.Checking account transactions are NOT reported to the credit bureaus and do not affect your credit score. Why is it still important to manage your checking account well? Yetlenders use information about your checking, savings and assets to determine whether you have the capacity to take on more debt. 4.How much money do they recommend keeping in your checking account? How much do they recommend for your emergency fund (a savings account)? It's a good idea to keep one to two months' worth of living expenses plus a 30% buffer in your checking account.